Starbreeze Valuation

Q: What is the Fair Price of STAR A when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

STAR A (SEK0.26) is trading below our estimate of [[fair value]] (SEK3.42)

Is STAR A undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

2/6

Valuation Score 2/6

Below Fair Value
Significantly Below Fair Value
Price-To-Sales vs Peers
Price-To-Sales vs Industry
Price-To-Sales vs Fair Ratio
Analyst Forecast

Share Price vs Fair Value

What is the Fair Price of STAR A when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: STAR A (SEK0.26) is trading below our estimate of fair value (SEK3.42)

Significantly Below Fair Value: STAR A is trading below fair value by more than 20%.

Key Valuation Metric

Which metric is best to use when looking at relative valuation for STAR A?

Key metric: As STAR A is unprofitable we use its Price-To-Sales Ratio for relative valuation analysis.

The above table shows the Price to Sales ratio for STAR A. This is calculated by dividing STAR A's market cap by their current revenue.
What is STAR A's PS Ratio?
PS Ratio	1.3x
Sales	SEK 208.72m
Market Cap	SEK 289.98m

STAR A key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue	0.7x
Enterprise Value/EBITDA	-0.8x
PEG Ratio	n/a

Price to Sales Ratio vs Peers

How does STAR A's PS Ratio compare to its peers?

The above table shows the PS ratio for STAR A vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
Company	Forward PS	Estimated Growth	Market Cap
Peer Average	0.8x
FLEXM Flexion Mobile	0.4x	11.1%	SEK 415.6m
EDYOU edyoutec	1.8x	n/a	SEK 55.1m
MAGI MAG Interactive	0.7x	n/a	SEK 226.3m
NITRO Nitro Games Oyj	0.4x	13.0%	SEK 57.3m
STAR A Starbreeze	1.3x	14.8%	SEK 290.0m

Price-To-Sales vs Peers: STAR A is expensive based on its Price-To-Sales Ratio (1.3x) compared to the peer average (0.8x).

Price to Sales Ratio vs Industry

How does STAR A's PS Ratio compare vs other companies in the SE Entertainment Industry?

3 Companies	Price / Sales	Estimated Growth	Market Cap
MOMENT Moment Group	0.2x	n/a	US$19.81m
MAXENT B Maximum Entertainment	0.03x	6.6%	US$3.56m
AIK B AIK Fotboll	0.1x	n/a	US$3.16m

No more companies available in this PS range

3 Companies		Estimated Growth	Market Cap

No more companies

Price-To-Sales vs Industry: STAR A is expensive based on its Price-To-Sales Ratio (1.3x) compared to the Swedish Entertainment industry average (0.7x).

Price to Sales Ratio vs Fair Ratio

What is STAR A's PS Ratio compared to its Fair PS Ratio? This is the expected PS Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

STAR A PS Ratio vs Fair Ratio.
Fair Ratio
Current PS Ratio	1.3x
Fair PS Ratio	0.1x

Price-To-Sales vs Fair Ratio: STAR A is expensive based on its Price-To-Sales Ratio (1.3x) compared to the estimated Fair Price-To-Sales Ratio (0.1x).

Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

Analyst Forecast: Insufficient data to show price forecast.

Discover undervalued companies

Better Collective

SEK 8.2b

Operates as a digital sports media company in Europe, North America, and internationally.

BETCO

SEK 131.80

-4.4%

-45.1%

Verve Group

€746.3m

Operates a software platform for the automated buying and selling of digital advertising space in North America and Europe.

VER

€46.85

3.0%

315.3%

Eniro Group

SEK 334.9m

Operates as a software-as-a-service company in Sweden, Norway, Denmark, and Finland.

ENRO

SEK 0.46

-13.2%